IMMEX SERVICE Non-Resident VMI Solution by NEMX
Two new HUBs in 2014: San Luis Potosí & Salamanca WHS Space growth: From 20,946 m2 to 73,973 m2 in 2 years 73,973.00 m 2 OFFICE WHS m 2 MEX 9,971.00 GDL 1,545.00 MTY 3,810.00 AGS 8,800.00 QRO 5,640.00 SILAO 22,865.00 SALAMANCA 10,350.00 321 Employees 10 Cities 32 Vehicles SLC 10,992.00 2
Foreign-based companies problems ' in Mexico associated with procurement and logistics Cash flow deterioration High inventory and procurement costs Inefficient transportation Issues for suppliers at overseas Higher customer demands Increase in product s inventory Need to shorten lead time Increasing competition Strong need to differentiate from competitors ャッシ Issues for manufacturers in Mexico Increase in inventory costs Unstable demand High expedited shipments costs Warehouse capacity constraints Complex transportation and customs clearance procedures NEMX s SOLUTION VMI (Vendor Managed Inventory) 3
What is Non Resident VMI? NEMX manages inventory for a foreign company at Mexican Territory based on a pre-agreement, avoiding out of stock situations and enabling JIT deliveries. Regular Logistics Flow Supplier s asset MEX Manufacturer s asset NEMX s SOLUTION by IMMEX VMI Efficient Logistics & Warehouses Supplier s asset MEX Manufacturer s asset 4
VMI Benefits Non resident inventory at Mexico No need to register foreign company at Mexico Market expansion at Mexico Costs reduction Eliminate out of stock and expedited shipments Efficient logistics supply JIT Deliveries Same day deliveries Customer s satisfaction increase 5
What is IMMEX? The IMMEX program is an instrument which allows the temporary import of goods to be used in the industrial process or service, designated to the elaboration, transformation or repairing of temporary imported foreign merchandise for its exportation or the provision of exportation services, without covering the payment of the general tax on importation, value added tax, and in some cases the compensatory quotas. NEMX holds IMMEX License as Services Modality (I) NEMX s SOLUTION = Non resident VMI by IMMEX Service IMMEX license (Services modality), enables Nippon Express (Through its owned company NEX Global Logistics) to introduce raw materials to Mexico as importer of record, while a foreign company will remain as cargo s owner, allowing quality sorting, packing and distribution to other IMMEX licensed companies. This is not to be confused with a Trading Company. Nippon Express / Nex Global does not take part in the commercial transaction and has no cargo ownership at any moment. 6
IMMEX Service Process DOCUMENTARY FLOW FOREIGN INVOICE FOR CUSTOMS CLEARANCE PURPOSES NEMX ISSUES INVOICE FOR IMPORT CLEARANCE PURPOSES BASED ON THE INFORMATION OF THE ORIGINAL INVOICE FOREIGN COMPANY ISSUES SELLING INVOICE TO FINAL CONSIGNEE; BASED ON THIS NE ISSUES INVOICE FOR EXPORT CUSTOMS ENTRY PURPOSES. FINAL CONSIGNEE RECEIVES CARGO AT OWN INVENTORY BY COMMERCIAL INVOICE OVERSEAS COMPANY PEDIMENTO IN / IN ENTRY (PER EVENT) PEDIMENTOS V1 / V1 ENTRIES (PER MONTH)* FINAL CONSIGNEE LOGISTICS FLOW IMPORT FROM PORT / BORDER PASSING THROUGH PHYSICAL CUSTOMS, PAYING ONLY FIXED DUTY (NOT IMPORT TAXES) NEMX STORES CARGO ; WITHOUT BEING CARGO S OWNER CARGO DELIVERY FROM NEMX TO FINAL CONSIGNEE WITHOUT GOING THROUGH PHYSICAL CUSTOMS, GUARANTEEING SAME DAY DELIVERY *Per final CNEE 7
IMMEX Service Logistics/Commercial Flows Via trading company Direct sale/billing ASIA EUROPE Customs Clearance Exporter: Overseas trading company Importer: Nex Global No import taxes payment * Virtual Customs Clearance Exporter: Nex Global Importer: Final Consignee ** *Only fixed duty **Becomes liable for duty and taxes 8
JIT Deliveries Flow Releases from NEMX to final CNEE are done through virtual exports. This allows consolidating one month deliveries at one single export entry (Pedimento), reducing clearance and administrative costs. No customs gate, no inspection FINAL CONSIGNEE Releases are not restricted to customs working hours** PEDIMENTO V1 / V1 ENTRY (PER MONTH )* In the example, 3 deliveries at one month can be declared in a single entry Allowance to declare deliveries/releases (Exports) on monthly basis* a *By CNEE **Deliveries restricted to NEMX s working hours 9
NEMX s IMMEX Credentials IMMEX Service License - IMMEX Since November 2006 - VAT Certification A - AGARO* Permit : Allowing the avoidance of Previo (Broker s Inspection) - B Certified Company, among other benefits: - 36 months stock allowance (Compared to 18 as non-certified IMMEX) - Sectores específicos - Access to restricted HS Codes Nex Global Logistics de México (NE owned) holds this license as IMMEX Service Company, with 6 stock points in Mexico: Tijuana, Aguascalientes, Monterrey, Querétaro, Silao and Guadalajara IMMEX Service can be offered at other locations upon request and project analysis. *When using NE shipping services at origin 10
Warehouse Management System Own WMS with Web Access Stocks Stock data Historical data Serial number data Receiving Arrivals Inquiries Shipping Shipping status Historical data Other Email alerts Reports download 11
Our Global Network Americas Employees 2,691 Locations 130 613 Locations Around the Globe More than 20,000 Employees EMEA Employees 3,672 Locations 87 Nippon Express Partner / Agent 259 Cities 42 Countries *Not including Japan 12
Our Advantages SIMPLE One-Stop Solution Our global and domestic networks enable onestop solutions, providing door to door services and complete Nippon Express handling during the complete process. KNOW-HOW Forwarding & Warehouse Experience Our 25 years forwarding experience in Mexico, and 9 years as IMMEX company ensure top-class service at each step of the supply chain, and at all times. FAST IMMEX Certifications Our multiple IMMEX certifications and permits allow us to offer the best lead time in the industry, also reducing damages and risks along the supply chain. 13
Global Logistics Provider